We don’t think about our own mortality until someone we know dies. No matter the circumstances of the death, it is always a shock. If it was one of your relatives, you might encounter the term “probate”. In a second, you’ll learn what it is, and what are the items that are often listed as probate.
What probate is?
Probate is a process during which it is ensured that all the financial obligations of the deceased are paid off and that all his or her belongings are transferred according to the last will. If the deceased had debts, they would have to be paid off first, in accordance with the local law. A probate isn’t always required. It depends on your local laws, and the size and value of the assets of the deceased.
Though in some cases, it might seem like a waste of time, such a law exists to ensure that the assets aren’t distributed incorrectly. Unfortunately, it means that if the deceased person had multiple assets, and there are multiple beneficiaries, it could take even several years before the process is finished. That is why many people decide to contact a company funding inheriting advances. This means that they receive money instantly, though the sum is lower. Still, if you need the money now, a probate loan might be a better choice than to wait a long time before you get the entirety of it, which could sometimes even take years.
What assets require probate?
The laws that specify whether a particular asset needs to go through a probate are often byzantine, which means that it is best to contact a lawyer to avoid unnecessary confusion.
Individual assets
Individual assets that are titled in the sole name of the descendant will need to go through a probate. Bank accounts, shares, but also bonds need probate if they are valuable enough. The required amount differs, so it is best to check your local laws.
Tenant-in-common assets
Tenant-in-common assets are those that are jointly owned by the deceased and by other people. If the real estate is owned jointly by the married couple, probate is not needed, though if the owners weren’t married, it might be necessary. Assets held jointly could also include vehicles, bonds, or shares.
Life insurance
If the will of the deceased person doesn’t contain any information regarding who should benefit from the life insurance of the deceased, then probate is needed. On the other hand, if the will includes such mention, then the process is not required.
Business assets
Another type of assets that must go through probate are business assets. If the deceased owned a company, then all the assets of this company will be distributed to the beneficiaries. Those could include furniture, buildings, and vehicles.
Thankfully, not all assets need to go through a probate. Those include:
Tenancy by the entirety
If the owners of the real estate are married, then there is no need for a long process. If one of them dies, the other person becomes the owner of the property. Depending on your local laws, it could also be possible that both owners don’t need to be married to make the process quicker, but that a written contract is enough.
Joint tenants with right of survivorship
If both owners own equal shares of the property, they can sign a contract, so that in the case of the death of one of them, the other person will inherit the property in its entirety.
Life goes on
Though we are aware that eventually everyone dies, we rarely think of our mortality. It is only when a person with which we developed a relationship dies do we realize that death is real. After the initial shock, there comes a whole lot of paperwork. The assets of the deceased person will be redistributed according to the will. This process can be quite lengthy, which is why some people decide to contact companies that fund inheritance advances. This way, the family won’t receive the entirety of the assets of the deceased, but they will be able to cover all the current expenses – not everyone can wait months or even years.
